Preparation technology, the structure determination, multiband luminescence and nonlinear optical properties (NLO) of the chalcogenide glasses are subject of present work. The Ag0.05Ga0.05Ge0.95S2Er2S3 glass samples with two different 0.12 and 0.27 at.% Er content were prepared by classical two-stage melt-quenching method. Glass state and morphology were confirmed by X-ray and EDS techniques. Influence of the Erbium doping on the luminescence and NLO properties was investigated. Based on the diagram of energy levels for the Er3+ ions, we proposed a model that explains photoluminescence (PL) emission mechanism. It should be emphasized that investigated glasses (in comparison with other materials) are exceptional in that all bands of PL are intense due to small energy losses at excitation and emission of ions Er3+. The photoinduced second and third harmonic generations have been measured in the reflected geometry and compared with reference – BiB3O6 (BBO): 10%Nd crystal.